NZD/USD surrenders gains, trades around key 50% fib

NZD/USD surrendered early gains and was last seen trading just above 0.7050 (50% fib retracement of Dec 14 high - Dec 23 low).

Weak data weighs over NZD

ANZ commodity prices in December rose 0.7% m/m, which is significantly lower than the previous month’s figure of 2.7%. However, the details revealed the dairy prices rose for the seventh time in a row, up 3.9% m/m. That seems to have helped the pair hold above the 50% fib level of 0.7050.

The spot clocked a high of 0.7071 earlier today on broad based USD weakness after Trump talked little about fiscal stimulus, economic policies.

NZD/USD Technical Levels

A break below 0.7050 (50% fib retracement of Dec 14 high - Dec 23 low) would open the doors to 0.7006 (38.2% fib + 5-DMA), under which 10-DMA at 0.6956 could offer support. On the other hand, a breach of 200-DMA at 0.7081 would expose 0.71 (zero figure). A violation there would open up upside towards 100-DMA at 0.7154.